Europe launches a ‘digital euro for banks’

Europe’s central bank plans to buy tokenized public-sector debt after bringing Pontes into operation.

• The Eurosystem has launched Pontes, a new infrastructure enabling banks to settle tokenized assets using central-bank money, effectively creating a 'digital euro for banks'.
• The European Central Bank (ECB) plans to invest its own funds in tokenized securities through Pontes, marking a significant step beyond just providing infrastructure.
• The success of Pontes will be measured by actual transaction volumes, the onboarding of additional participants, and the timing and scale of the ECB's initial tokenized asset purchases.

Topics: Jurisdictions, Infrastructure providers, Public debt, Regulatory sandboxes pilots, Major financial incumbents, Tokenized us treasuries

Tags: #pontes #digitaleuroforbanks #ecb #tokenizeddebt #centralbankmoney #settlement #deutschebank #santander #wholesalemarkets #eurosystem

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What attracts tokens to Multi trillion-dollar Wholesale Markets?: By John Bertrand

• The City of London aims to leverage its existing dominance in wholesale financial markets to become a leader in tokenized markets, capitalizing on DLT's potential to transform traditional infrastructure.
• The UK possesses significant advantages in liquidity, infrastructure, and legal frameworks, with substantial opportunities in tokenizing its vast asset base, estimated to grow to $2-$30 trillion by 2030.
• While other financial centers are also developing tokenization capabilities, the UK's timely and well-sequenced implementation of safe, scalable tokenized settlement is crucial to capture this transformative opportunity.

Topics: Jurisdictions, Infrastructure providers, Scalability, Established hubs, Major financial incumbents, Institutional capital inflows, Market depth liquidity

Tags: #cityoflondon #tokenisation #wholesalemarkets #distributedledgertechnology #ukleadership #institutionalattention #legalcertainty #operationalresilience #interoperability #trillionsofdollars

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Stablecoins and Tokenized Deposits: European Banking Association Says Transition Needs Time, Tokenovate...

• The European Banking Association (EBA) stated that it's too early to assess the full capabilities of stablecoins and tokenized deposits regarding compliance, security, and user experience.
• While speed and cost efficiencies are expected, current use cases are considered marginal, with the EBA urging financial institutions to proactively evaluate investments in this area.
• Tokenovate's CEO highlights the greater opportunity in using tokenized money for asset settlement, reducing risk and capital tie-up, but emphasizes the need for common standards and a shared foundation to overcome fragmentation.

Topics: Asset types, Legal regulatory, Integration with defi, Stablecoins digital cash, Securities law classification, Rwa collateral lending

Tags: #tokenizeddeposits #stablecoins #europeanbankingassociation #eba #tokenovate #digitalcurrencies #smartpayments #settlement #financialinstitutions #wholesalemarkets

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